A recent report from a Senate subcommittee has disclosed that airlines have amassed billions of dollars in what are termed “junk fees” by charging customers extra for seat selection and carry-on baggage. This report, published on Tuesday, indicates that some airlines even incentivized employees to identify customers attempting to sidestep these fees. Between 2018 and 2023, five major U.S. airlines accumulated over $12 billion solely from seat selection fees, which were traditionally included in the price of airline tickets. The report highlights the exorbitant fees charged by airlines in 2023: United Airlines charged up to $319 for extra legroom, Spirit Airlines up to $299, Delta Air Lines up to $264, Frontier Airlines $141, and American Airlines $140. The report emphasizes that seat fees have escalated in cost and scope, compelling families with young children to pay extra to sit together. This investigation coincides with the Biden Administration’s efforts to enhance consumer protections in air travel. Earlier this month, the Department of Transportation announced the enforcement of a new rule mandating airlines to automatically refund passengers for canceled or significantly delayed flights. Additionally, the report outlined tactics employed by airlines to ensure passengers pay for carry-on bags. Frontier and Spirit Airlines reportedly spent $26 million in 2022 and 2023 on incentives for agents to enforce bag policies, often leading to passengers being forced to pay bag fees or risk missing their flights. One Frontier official mentioned that agents could earn up to $10 for each passenger made to check a bag at the gate. The airline justified this practice as necessary to prevent customers from taking advantage of the airline’s policies. Frontier defended its unbundled fee structure as a means to enhance affordability in air travel, claiming it allows more people, including families and small businesses, to fly. The industry group Airlines for America also defended its members’ practices, citing compliance with tax laws and regulations. The report noted that some airlines might be evading federal taxes by categorizing certain charges as “non-taxable fees,” putting compliant airlines at a disadvantage. In response to the findings, the Department of Transportation proposed rules in August to eliminate seat-selection fees for families wishing to sit together. Transportation Secretary Pete Buttigieg remarked that the protections instituted under the current administration have garnered widespread public and bipartisan support. The Senate Permanent Subcommittee on Investigations plans to hold a hearing with officials from major airlines including American, Delta, United, Frontier, and Spirit next week.
